Name of the Project
Valentine gold project.

Location
Newfoundland and Labrador, Canada.

Project Owner/s
Marathon Gold.

Project Description
A feasibility study has proposed an openpit mining operation with a low initial capital cost and a high rate of return over a 13-year mine life.

The project has proven and probable reserves of 47.05-million tonnes at 1.36 g/t gold. Measured and indicated mineral resources are estimated at 56.66-million tonnes grading 1.72 g/t of gold, and inferred mineral resources of 29.59-million tonnes grading 1.72 g/t gold.

Average gold production is estimated at 173 000 oz/y from 2024 to 2033, from the processing of high-grade mill feed, and at 56 000 oz/y from 2034 to 2036, from the processing of low-grade stock piles.

The project will have a mill capacity of 2.5-million tonnes a year, based on gravity leaching, expanding to four-million tonnes a day in Year 4, based on gravity-floating leaching.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of C$600-million and internal rate of return of 31.5% at $1 500/oz gold. Payback is estimated at 1.9 years.

Capital Expenditure
Initial capital is estimated at C$305-million.

Planned Start/End Date
Upon the receipt of final regulatory approvals and site permits, early works activities will start in the third quarter of 2022, supporting a schedule for first gold production in late 2024.

Latest Developments
Marathon Gold has warned of a 15% to 20% increase in the life-of-mine (LoM) capital and operating costs of its Valentine project, noting that it is in line with market trends.

The capital cost increase is mainly owing to higher materials costs and contractor rates, the company has said, noting that higher consumables costs and labour rates will push up the operating and all-in sustaining cost estimates.

The impact of higher costs will be reflected in an updated technical report that Marathon is preparing for the project. It will also reflect a higher price environment and incorporate a new project-wide mineral resource estimate, which is expected to show an estimate of openpit measured and indicated mineral resources that are larger and better constrained.

Key Contracts, Suppliers and Consultants
Ausenco Engineering Canada (feasibility study); Moose Mountain Technical Services (mining consultant); APEX Geoscience (geological consultant); Golder Associates (tailings consultant); Stantec Consulting (site water management and environmental consultant); and GEMTEC Consulting Engineers and Scientists (geotechnical consultant).

Contact Details for Project Information
Marathon Gold, tel +1 416 861 0851.